James Park believes the Supreme Court may be hesitant to significantly limit the SEC's disgorgement powers out of concern that Congress could pass a new statute to overrule the Court's decision.

The U.S. Securities and Exchange Commission was granted the general power to impose civil penalties in 1990.

The Supreme Court ruled in the 2024 SEC v. Jarkesy case that defendants have a constitutional right to a jury trial in federal court when the SEC seeks civil penalties for fraud.

The U.S. Court of Appeals for the Ninth Circuit ruled that the SEC can obtain disgorgement without showing pecuniary injury to a victim, creating a circuit split with the Second Circuit.

Courts first granted the U.S. Securities and Exchange Commission the power of disgorgement starting in the 1970s.

The U.S. Securities and Exchange Commission alleges that defendant Charles Sripach manipulated the price of penny stocks through promotional activities on his website and wash trades.

In 2021, after the Liu v. SEC decision, Congress passed a statute explicitly permitting the SEC to seek disgorgement without adding conditions such as proving victim harm.

In some enforcement cases, the U.S. Securities and Exchange Commission is unable to identify victims or return disgorged funds, resulting in the money being sent to the U.S. Treasury.

The Supreme Court ruled in the Kokesh v. SEC decision that SEC disgorgement cases are subject to the statute of limitations for penalties.

The U.S. Court of Appeals for the Second Circuit, in the case SEC v. Goebbels, ruled that the SEC must demonstrate pecuniary injury to victims to obtain disgorgement.

Andrew Left took a short position in GameStop and was subsequently squeezed by retail investors who organized on Reddit.

Prosecutors allege that Andrew Left profited by approximately $20 million through market manipulation.

Andrew Left, through his platform Citron Research, is known for correctly identifying problems at Valiant Pharmaceuticals.

James Park believes the trial of Andrew Left is more broadly about the use of social media to influence markets rather than being a reckoning specifically for the short-selling industry.

James Park believes the current U.S. administration is more skeptical about enforcing the Foreign Corrupt Practices Act than the previous administration.

The U.S. case against Gautam Adani's company alleges it paid bribes in India related to building clean energy projects, a violation of the Foreign Corrupt Practices Act.